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Influences on Strategic Decision Effectiveness

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Influences on Strategic Decision Effectiveness
Strategic Management Journal
Strat. Mgmt. J., 28: 431–453 (2007) Published online 5 February 2007 in Wiley InterScience (www.interscience.wiley.com) DOI: 10.1002/smj.597 Received 21 July 2004; Final revision received 3 August 2006

INFLUENCES ON STRATEGIC DECISION EFFECTIVENESS: DEVELOPMENT AND TEST OF AN INTEGRATIVE MODEL
SAID ELBANNA1 and JOHN CHILD2 *
College of Business and Economics, United Arab Emirates University, Al Ain, United Arab Emirates 2 Birmingham Business School, University of Birmingham, Birmingham, U.K.
1

This paper draws upon three broad perspectives on the strategic decision-making process in order to develop a more completely specified model of strategic decision effectiveness in a different context, namely Egypt. The key variables in this model consist of three strategic decisionmaking process dimensions (rationality, intuition, and political behavior); seven moderating variables concerning decision-specific, environmental, and organizational factors; and strategic decision effectiveness as an outcome variable. A two-stage study was conducted in which the first stage provided exploratory insights and the second stage investigated hypotheses on the impact of strategic decision-making process dimensions on strategic decision effectiveness and the moderating role of broader contextual variables. The second-stage study produced three major findings: (1) both rational and political processes appear to have more influence on strategic decision effectiveness than does intuition; (2) strategic decision effectiveness is both process- and context-specific; and (3) certain results support the ‘culture-free’ argument, while others support the ‘culture-specific’ argument. Copyright  2007 John Wiley & Sons, Ltd.

INTRODUCTION
Previous research into the strategic decisionmaking process has produced some inconsistent findings. This may be due to the application of oversimplified models to a complex phenomenon. Therefore, several scholars have advocated



References: Strat. Mgmt. J., 28: 431–453 (2007) DOI: 10.1002/smj Influences on Strategic Decision Effectiveness Strat. Mgmt. J., 28: 431–453 (2007) DOI: 10.1002/smj 452 Strat. Mgmt. J., 28: 431–453 (2007) DOI: 10.1002/smj Hitt MA, Tyler BB Strat. Mgmt. J., 28: 431–453 (2007) DOI: 10.1002/smj

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